Pound Snaps Seven-Day Drop Versus Euro on Merkel Greece Pressure
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The pound advanced against the euro, ending the longest run of declines in almost three years, as German Chancellor Angela Merkel maintained pressure on Greece to meet austerity pledges.
Sterling dropped to the lowest level in four weeks versus the dollar after the International Monetary Fund cut its economic outlook for the U.K. and as data showed manufacturing shrank more than economists forecast in August. Ten-year gilts slipped as the Debt Management Office sold 1.75 billion pounds ($2.8 billion) of bonds due in June 2032. The U.K. economy grew at its fastest pace in five years in the third quarter, the National Institute of Economic and Social Research said today.